Business-to-business or B2B is a transaction or interaction that takes place between two or more businesses. B2B transactions usually involve automated processes between the trading partners. They are performed in much higher volumes than business-to-consumer or B2C transactions. A company that makes aircraft engines would sell their products to an aircraft manufacturer, which is another business entity. In contrast, when a company sells consumer goods such as health care products to customers, the ensuing transaction would be termed as a B2C transaction. B2B transactions also include marketing activities between businesses and not just the final result from marketing efforts. The term B2B is also used to identify sales transactions between businesses.
Business to business marketing is defined as 'the process of planning and executing the pricing, promotion and distribution of goods, ideas and services to create exchanges by one business, usually a professional marketing agency, to satisfy organizational goals of another business'. The goal of a business agency engaged in B2B Marketing is to establish, maintain and enhance long-term customer relationships with other businesses at a profit, so that the objectives of all the concerned parties are met.
The actual marketing generally involves the processes of market research, product development, product life cycle management, pricing, channel management as well as product promotion. However, marketing is not a direct decision maker in these processes. It ensures that products and services are developed according to market requirements and are profitable.
Many businesses produce sophisticated high value products requiring huge financial and time investments. They need accurate information and feedback regarding the product feasibility, desirability, price band, consumer response to their product and similar products in the market. Such businesses prefer to entrust product marketing and related tasks to professional marketing agencies. Many B2B marketing agencies conduct their own marketing on the Internet.